Banks prepare to amend bylaws in line with UN international classification of activities
As part of ongoing efforts to align company licensing and business activities with international standards, Al-Rai has learned from informed sources that Kuwait’s Ministry of Commerce and Industry is considering instructing local banks to convene extraordinary general assemblies to amend their articles of association.
The proposed amendments would add a clause aligning the activities of banks with the United Nations International Classification of Economic Activities (ISIC), ensuring consistency between the banks’ registered activities and the global framework used for economic and statistical reporting.
According to Kuwait’s Companies Law and related regulations, amending any provision in a company’s articles of association requires holding an extraordinary general meeting (EGM), reports Al-Rai daily.
Sources said that officials at the Ministry of Commerce have communicated with relevant banking authorities regarding the requirements for classifying statistical data under the UN system.
Banks are being asked to update their internal documentation and disclose the names of their licensed activities exactly as listed in the international and Gulf classifications.
This step, the sources explained, is crucial for enhancing transparency and serving as a reliable reference for both local and foreign investors.
Discussions between the ministry and the banking sector have included proposals to postpone the extraordinary assemblies to avoid interference with the ordinary general assemblies that banks must hold annually under the supervision of the Ministry of Finance.
Officials are reportedly considering allowing the amendment item to be included within the banks’ annual assemblies scheduled for 2025, rather than calling separate meetings in advance.
This approach would ensure that banks remain compliant with their annual reporting obligations while streamlining procedural requirements.
The Ministry of Commerce has previously approved the addition and modification of several commercial activities to align with the international classification system — part of an international registry adopted in about 150 countries. The ministry views this as a key step toward developing Kuwait’s business environment and strengthening its competitiveness.
According to the sources, one local bank has already amended its articles of association in accordance with the UN classification, while eight other banks are expected to follow suit during their 2025 general assemblies.
The sources clarified that this alignment does not involve any substantive changes to banks’ existing operations or licensed activities. Rather, it is an administrative and technical adjustment to ensure that the official wording of banking activities matches the international nomenclature contained in the UN International Activities Guide.
This guide serves as the authoritative reference for the classification and licensing of economic activities within Kuwait, ensuring consistency with legal and regulatory frameworks set by the Ministry of Commerce.
